What's happening
This bill amends New York's price gouging law to add criminal penalties, allowing violators to be prosecuted and fined.
Why it matters
Adds criminal penalties to price gouging law, making it a prosecutable offense. By explicitly allowing district attorneys to file criminal charges, the bill elevates price gouging from a civil violation to a crime, increasing the potential consequences for violators.
Expands enforcement options and deterrence. The amendment empowers local district attorneys, not just the state Attorney General, to pursue cases, which could lead to more aggressive and widespread enforcement during emergencies or market disruptions.
Aims to protect consumers more effectively during crises. By introducing the possibility of criminal prosecution, the bill seeks to further deter businesses from exploiting consumers in vulnerable situations—such as natural disasters, power outages, or other emergencies—when essential goods and services are most needed.
Potentially increases compliance costs and legal risks for businesses. Companies involved in the distribution of consumer goods may face stricter scrutiny and higher risks if accused of price gouging, prompting them to review pricing practices during abnormal market conditions.
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Who cares
Headline styles
Ban Price Gouging
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 8
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Price Gouging
In Assembly Committee · Rules · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1642
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sen. BROOKS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to price gouging
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 396-r of the general business law, as amended by chapter 510 of the laws of 1998, subdivision 4 as amended by chapter 224 of the laws of 2008, is amended to read as follows:
§ 396-r. Price gouging. 1. Legislative findings and declaration. The legislature hereby finds that during periods of abnormal disruption of the market caused by strikes, power failures, severe shortages or other extraordinary adverse circumstances, some parties within the chain of distribution of consumer goods have taken unfair advantage of consumers by charging grossly excessive prices for essential consumer goods and services.
In order to prevent any party within the chain of distribution of any consumer goods from taking unfair advantage of consumers during abnormal disruptions of the market, the legislature declares that the public interest requires that such conduct be prohibited and made subject to civil and criminal penalties.
2. During any abnormal disruption of the market for consumer goods and services vital and necessary for the health, safety and welfare of consumers, no party within the chain of distribution of such consumer goods or services or both shall sell or offer to sell any such goods or services or both for an amount which represents an unconscionably excessive price. For purposes of this section, the phrase "abnormal disruption of the market" shall mean any change in the market, whether actual or imminently threatened, resulting from stress of weather, convulsion of nature, failure or shortage of electric power or other source of energy, strike, civil disorder, war, military action, national or local emergency, or other cause of an abnormal disruption of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01201-01-9
S. 1642 2
market [which results in the declaration of a state of emergency by the governor]. For the purposes of this section, the term consumer goods and services shall mean those used, bought or rendered primarily for personal, family or household purposes. This prohibition shall apply to all parties within the chain of distribution, including any manufacturer, supplier, wholesaler, distributor or retail seller of consumer goods or services or both sold by one party to another when the product sold was located in the state prior to the sale. Consumer goods and services shall also include any repairs made by any party within the chain of distribution of consumer goods on an emergency basis as a result of such abnormal disruption of the market.
3. Whether a price is unconscionably excessive is a question of law for the court.
(a) The court's determination that a violation of this section has occurred shall be based on any of the following factors: (i) that the amount of the excess in price is unconscionably extreme; or (ii) that there was an exercise of unfair leverage or unconscionable means; or (iii) a combination of both factors in subparagraphs (i) and (ii) of this paragraph.
(b) In any proceeding commenced pursuant to subdivision [four] five of this section, prima facie proof that a violation of this section has occurred shall include evidence that
(i) the amount charged represents a gross disparity between the price of the goods or services which were the subject of the transaction and their value measured by the price at which such consumer goods or services were sold or offered for sale by the defendant in the usual course of business immediately prior to the onset of the abnormal disruption of the market or
(ii) the amount charged grossly exceeded the price at which the same or similar goods or services were readily obtainable by other consumers in the trade area. A defendant may rebut a prima facie case with evidence that additional costs not within the control of the defendant were imposed on the defendant for the goods or services.
4. Any person who violates the provisions of this section shall be guilty of a violation.
5. Where a violation of this section is alleged to have occurred, a district attorney may file an accusatory instrument with a criminal court within the judicial district in which such violations are alleged to have occurred, and the attorney general may apply in the name of the People of the State of New York to the supreme court of the State of New York within the judicial district in which such violations are alleged to have occurred, on notice of five days, for an order enjoining or restraining commission or continuance of the alleged unlawful acts. In any such proceeding, the court shall impose a civil penalty in an amount not to exceed twenty-five thousand dollars and, where appropriate, order restitution to aggrieved consumers.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to price gouging
Purpose
The purpose of this bill is to strengthen the price gouging law to allow local law enforcement to pursue those businesses that take unfair advan- tage of consumers during market disruptions.
Summary of provisions
Section 1. amends section 396-r of the general business law by estab- lishing the crime of price gouging as a violation, authorizing district attorneys to pursue violations, and clarifying that no state of emergen- cy need be declared by the governor for the enforcement of the price gouging law to be in effect during an abnormal disruption in the market
Read the full memo (675 words)
Section 2. is the enacting clause.
Existing law
General Business Law § 396-r prohibits any party within the chain of distribution of any consumer goods from selling or offering to sell such goods of services for an amount that represents an unconscionably exces- sive price during an abnormal disruption of the market for such goods and services. Defines "abnormal disruption of the market" to include any change, whether actual or imminently threatened, but requires that it be one that results in the declaration of a state of emergency by the Governor.
Justification
Following hurricanes such as Katrina, Rita, and Sandy, gasoline prices rose far beyond anything justified by the market disruption. During such abnormal disruption of the market caused by extraordinary adverse circumstances like a hurricane, parties within the chain of distribution of consumer goods have taken unfair advantage of consumers by charging grossly excessive prices for essential consumer goods and services. In order to prevent any party within the chain of distribution of any consumer goods from taking unfair advantage of consumers during abnormal disruptions of the market, the public interest requires that such conduct be prohibited and made subject to civil penalties and criminal sanctions.
During any abnormal disruption of the market for consumer goods and services vital and necessary for the health, safety and welfare of consumers, no party within the chain of distribution of such consumer goods or services or both shall sell or offer to sell any such goods or services or both for an amount which represents an unconssionahly, excessive price.
Whether a price is unconscionably excessive remains a question of law for the Court. This bill applies to all parties within the chain of distribution, including any manufacturer, supplier, wholesaler, distrib- utor or retail seller of goods (including gasoline) both sold by one party to another when the product sold was located in the state prior to the sale. It also clarifies that no emergency declaration by the Gover- nor is necessary in order for law enforcement to commence an action pursuant to this statute.
In every corner of the state, calls have been received from consumers who believe that the prices they are paying at the pump are being unscrupulously inflated. We must give law enforcement the tools to pursue those who attempt to illegally profit and seek severe penalties from those who are found to have violated the law. This bill adds a strong enforcement tool for local prosecutors to help curb price gouging at the pump.
By bolstering the price gouging law, the state is ensuring that we will pursue those who attempt to illegally profit and seek severe penalties from those who are found to have violated the law. Any seller in the chain of distribution who prices goods well above the average level for a given area has some explaining to do. We must avoid the kinds of behavior we saw immediately following 9/11 and the 2005 hurricanes, when some service station owners drastically increased the pump price because of unfounded supply fears, and some motorists engaged in panic buying. We must ensure that the proper enforcement mechanisms are in place to deter price gouging during current and future crises. There must be zero tolerance of people breaking the law during an emergency.
Fiscal implications
None to the state
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.